The demand for AI-driven compute power is increasing energy consumption in the US, leading some power companies to abandon plans to stop using coal, risking future power shortages.
This situation is indicative of a larger trend where energy demands from datacenters are outpacing supply, forcing utility companies to reconsider their energy strategies.
Despite previous commitments to reduce coal usage for cleaner energy, the rising needs from tech giants like Google and Meta are creating a situation where coal plants cannot be decommissioned.
Management firm Bain & Company warns that unless utility companies expand generation capacity by up to 26 percent, energy demands might soon outstrip supply, presenting a critical challenge.
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